No layoff plans at Evonik consumer business - official

28 January 2009 04:29  [Source: ICIS news]

BOCA RATON, Florida (ICIS news)--Evonik’s consumer specialties and household care business will not have any layoffs  although certain facilities were running at reduced operating rates, a company official told ICIS in an interview on Tuesday. 

“Rather than laying people off, we created a rotation for plant employees,” said David Del Guercio, senior vice president  and general manager for Evonik Goldschmidt’s consumer specialties and household care, at the sideline of the Soap and Detergent Association (SDA) annual meeting.

“They also have an option where they can have reduced hours per week. This is the approach we are taking for the time being.  Hopefully, we can soon go back to full operating schedules in the next month or so, and everybody can come back full time,” he added. 

Del Guercio said that Evonik has also released some contractors in order to keep its own employees in areas where production had been downscaled.

“We haven’t had any layoffs although we can’t say that we won’t if things get worse. But at this point, there is no plan for that. We have to see how long and deep the economic situation is going to be,” he said. 

For this year, Del Guercio said they have certain cost-cutting programs already in place such as keeping discretionary spending low as well as continuing with reduced operating rates at certain business areas.  

“Everybody has to contribute in some ways. The challenge for everybody within the chemical industry is to maintain service, quality, R&D and innovation and delivering it to your customers while at the same time finding ways to cut things out,” he added.

The SDA meeting ends on Saturday.

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By: Doris de Guzman
+1 713 525 2653



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